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More Than 50% MGNREGS Workers Deprived Of Pay Due To Aadhar-Based Payment System

"Aadhar-based Payment is such a complicated system that even many bankers fail to understand its functionality,” noted Indian economist Jean Drèze while criticising the new regulation.

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The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is a social security measure aimed at guaranteeing the ‘right to work.’ It assures the workers a minimum set of wages and 100 days of unskilled work annually for every rural household. On February 20, the Union Government brought in a regulation within this system that would require all payments to the MGNREGS workers to be carried out through the Aadhaar-based Payment System.

Ever since the new payment system was put in place, several workers employed under the scheme have been deprived of their wages. Coming up with the bold allegation was scholar and Indian economist Jean Drèze during an event on March 14. 

Geo-Tagged Attendance & Aadhar-Payment System

As per the newest regulations, the Bharatiya Janata Party-led Union government has made it mandatory that all payments to the MGNREGS workers be made through the Aadhaar-based Payment System. The workers would also have to submit their daily attendance through the National Mobile Monitoring Software App. Attendance would be recorded with them uploading two geo-tagged photos on the application. Failure to do so would mean that they would not be paid for the day’s work. 

Giving his two cents regarding the new system, Indian welfare economist Drèze said that it is illegal and criminal not to pay wages to workers for the work they have done under the scheme. Only 43 per cent of workers have seeded their Aadhaar with the attendance app and were considered eligible for the payment system. While the reasons for this could expand from digital illiteracy to fund shortages, more than half the workers under the scheme remain unpaid. This also led to protests from workers, activists, and politicians.

Focussing on the budget allocation, many claimed that 2023’s fund allocation for the social security scheme has declined despite an increase in the revised budget for MGNREGS in the previous financial year of 2022-’23. The last budget session saw the Centre allocating ₹73,000 crores for the scheme and later revising it up to ₹89,400 crores. However, this year, the allocation has dropped to ₹60,000 crores, the lowest documented in the last four Union Budgets.

More Than 15 Crore Workers Affected

Drèze voiced strong criticisms during the event and accused the ruling party of unleashing an unprecedented attack on the scheme by reducing the funding. A report by Scroll quoted the economist saying, “Aadhar-based Payment is so complicated system that even many bankers fail to understand its functionality and the majority of workers cannot be paid through this system.” He also noted that it is unfair that wages get delayed and accumulated for months as projects run out of funds. 

Several other speakers from various labour groups also expressed the same concerns regarding the social security scheme. Current changes regarding the attendance and payment mechanism would impact approximately 15 crore workers across the country, commented Nikhil Dey from the Mazdoor Kisan Shakti Sangathan in Rajasthan. The groups have now urged legislators to demand an explanation from the Union Rural Development.

Also Read: This Day In 2005, MGNREGA Offering Means Of Livelihood To Millions Of Underprivileged Was Passed- Know More

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2023-03-16 11:36:37.0

More Than 50% MGNREGS Workers Deprived Of Pay Due To Aadhar-Based Payment System

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